Modernisation of the Armed Forces is a continuous process and is undertaken based on threat perception, operational challenges and technological changes required to keep the Armed Forces in a state of readiness to comprehensively meet various security challenges. During 2015-16, 61 Contracts have been signed for capital procurement of defence equipment for Armed Forces including Radars, Missiles, Rockets, Helicopters, Aircrafts and Simulators.

A number of measures have been taken to achieve self-sufficiency in defence production by harnessing the capabilities of the public and private sector. These measures include provisions for according priority and preference to procurement from Indian vendors under the Defence Procurement Procedure, liberalization of the licensing regime and providing access to modern and state-of-the-art technology to Indian industry by raising the cap on FDI in the defence sector.

The DPP-2016 has introduced provisions for expediting the procurement process. The progress of procurement cases is also monitored frequently and closely at various levels in the Government.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri PK Biju and others in Lok Sabha today.

Government had appointed a Judicial Committee headed by Justice L. Narasimha Reddy, retired Chief Justice of Patna High Court on 14.12.2015, to look into anomalies, if any, arising out of implementation OROP.
The Terms of Reference for the Committee is as under:
To examine and make recommendations on references received from the Central Government on the following matters:
· Measures for the removal of anomalies that may arise in implementation of the OROP letter No. 12(1)/2014/D(Pen/Pol)/ Part-II dated 07.11.2015.
· Measures for the removal of anomalies that may arise out of inter-service issues of the three forces due to implementation of OROP order ibid.
· Implications on service matters.
· Any other matter referred by the Central Government on implementation of the OROP or related issues. In making its recommendations, the Committee shall take into account the financial impact of its recommendations.
The Committee has submitted its report on 26.10.2016 which is under examination. During the Financial year 2016-17, a sum of 12456 crore has been provided for expected expenditure on account of One Rank One Pension (OROP).
The status of payment to the Defence Pensioners/ Family Pensioners on account of implementation of OROP benefits, as on 03.11.2016 are as under:
Beneficial pensioners (pre-July 2014)
No. of cases paid (1st instalment and lump-sum payment
Amount disbursed (in crore)
No. of cases paid (2nd instalment)
Amount disbursed (in crore)
20,63,529

19,35,968

3927.86
12,37,511

1817.29

Out of 20,63,529 pensioner beneficiaries, 1,27,561 Defence Pensioners/Family Pensioners are yet to get the benefits of OROP. Public Grievance Cell in the Department is receiving grievances of the pensioners/family pensioners and taking up the matters with the concerned Department for redressal of their grievances. Disposal of grievances is monitored at the highest level in the Government.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Alok Sanjar and others in Lok Sabha today.
DM/NAMPI/RAJ

Procurement of defence weapons and equipment is an ongoing process in which Government acquires equipment and technologies keeping in view, inter alia, the security situation, the equipping requirements of the Armed Forces, technology advances and available budgetary resources.

During the last two financial years, 108 contracts with a total value of 112736.81 Crore have been signed for capital procurement of defence equipment including Ships, Missiles, Frigates, Rockets, Simulators, Aircrafts, Helicopters and Radars. In addition, in the last two financial years, the Defence Acquisition Council has accorded ‘Acceptance of Necessity’ (AoN) for 114 cases with a total value of 2,25,022 Crore. These include AoNs for 155mm Gun systems, Helicopters, and Warships.

To cater to the equipping requirements of the Armed Forces, the Defence Procurement Procedure 2016 has been promulgated with effect from 01.04.2016, which has specific provisions to facilitate swift decision making, promote self-reliance and improve transparency and accountability in procurements.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Vinayak Bhaurao Raut and others in Lok Sabha today.

Department of Industrial Policy and Promotion (DIPP) has issued 14 licenses to 14 Indian Private companies for manufacture of ammunition. The private companies having Industrial Licenses can get the orders against competitive bidding and therefore the estimated costs in respect of ammunitions likely to be manufactured by them will not be known before hand.

A contract was concluded between M/s Mazagon Dockyard Limited (MDL) and DCNS, France on 6th October 2005 for construction of six Scorpene Class submarines at MDL.

Government is aware of media reports regarding the leakage of details of the Scorpene submarines being built at MDL. A Committee was constituted by the Ministry of Defence to enquire into the reported leak of documents. The Committee has submitted its report, which is under examination.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Satav Rajeev and others in Lok Sabha today.

On 18th September 2016, a group of four terrorists attacked Rear Administrative Base of an Infantry Battalion in Uri garrison. The Quick Reaction Team of the Battalion killed all the four terrorists. A total of 19 Army personnel were martyred in the incident.

The information on total loss incurred by Army along with the compensation paid to the deceased / injured personnel is being collected and will be laid on the Table of the House.

National Investigation Agency is conducting an investigation into the incident. The investigation is not complete. On 21st September 2016, Pakistan High Commissioner in New Delhi was summoned for demarche by Foreign Secretary and was told about Government of India’s willingness to provide proof including finger prints and DNA samples of terrorists killed in Uri, should the Government of Pakistan intend to investigate the attack. The Government of Pakistan was also reminded of its solemn commitment made in January, 2004 not to allow territory under its control to be used for terrorism against India.

Army has taken necessary steps including inter alia sensitizing all troops on the security situation and the necessity to maintain a high level of vigil and security measures; review, coordination and streamlining of the response mechanism and short and long term measures to strengthen the security infrastructure.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri T Radhakrishnan and others in Lok Sabha today.

Several parts of Light Combat Aircraft (LCA), Tejas is of foreign origin. LCA Tejas is an indigenously designed and developed Aircraft. Out of total 344 LRUs (Line Replaceable Units) involved in the system level of LCA, a total of 210 LRUs have been produced indigenously and balance 134 LRUs are being imported from foreign companies. Indigenous content of the LCA Tejas Aircraft is 59.7% by value and 75.5% by numbers.

To reduce dependence on foreign companies, out of the 134 imported LRUs, the indigenisation of 42 units is under progress. Further efforts are being made by way of indigenization with the objective to reduce the import content progressively. Consolidation of technical specification of imported units have been carried out and they are being projected for indigenisation by private companies, DRDO labs and HAL divisions.

In a few cases, HAL has entered into repair agreements for a number of items to locally repair the items and for balance, they are in the process of entering into Long Term Repair and Maintenance Agreement (LTRMA).

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Rakesh Singh in Lok Sabha today.

There has been no delay in AWACS(I) Project as the current mandate of the Project was to finalise on the contract of the aircraft through a global tendering process, which has been completed.

There has been delay in AWE&C Programme due to various reasons some of which are, finalization of Operational Requirements, delay in delivery of certified aircraft, incompletion of flight evaluation of the integrated systems due to reasons of modification on aircraft by Original Equipment Manufacturer (OEM), major maintenance and system complexities, etc.

The first AEW&C is likely to be inducted in Dec 2016 and indigenous AWACS (I) System is likely to be available from 2024.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Devji M Patel in Lok Sabha today.

An Inter-Governmental Agreement (IGA) along with Aircraft & Weapons Package Supply Protocols and Technical Arrangement were signed with the French Government on 23rd September, 2016 for procurement of 36 Rafale aircraft in fly-away condition. The deliveries will commence from September, 2019.

An IGA for procurement of five Firing Units of S-400 Long Range Surface to Air Missile (LRSAM) system along with associated equipment from Russia has been signed on 15th October, 2016. An IGA for the procurement of Kamov helicopters for Indian Air Force and Indian Army from Russia under ‘Buy and Make (Indian)’ category was signed on 24th December, 2015. The terms and conditions for supply of these equipment are to be negotiated with the Russian side.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Sushil Kumar Singh and Smt Kothapalli Geetha in Lok Sabha today.

@PARIKRAMA@Abingdonboy 16.54 Billion USD worth 108 contracts have been signed in 2 financial years. Around 6 billion USD returned from the CAPEX from 2 FY defence budgets then ?

Is this situation any better from that of AK ANTONY ?

Click to expand...

Not quite all CAPEX would have been returned unspent to Fin Min, some CAPEX would have been transferred to OPEX account towards end of the FY, the IA is particuraly prone to engage in this devious creative accounting thanks to their ever exploding size.

Even so, not a massively improved performance over "the saint", still tens of billions worth of deals (in total value) going unsigned every year.